Spanish, Italian Bonds Continue Sliding As Risk Sees Modest Squeeze

Following yesterday's blistering market fall, the dead cat is in play, if only for a few hours like on Monday morning, precipitated by some aggressive short covering in the EURUSD, which will continue to be the primary buffer of every fall courtesy of the record number of net shorts, who cover on even the tiniest bit of pseudo-favorable news, no matter how ludicrous. As Bloomberg recaps, European markets gain led by telcos, utilities. Financials trade slightly higher having dropped earlier. Italian shares underperform. The euro reversed earlier losses against the dollar to trade stronger. Commodities fall led by natural gas, the GSCI index is off intraday lows. But the biggest data continues to be the action in Spanish, and now Italian, which everyone is watching very closely, bonds. As the charts below show, subordination is bad, bad thing, and one the Spandora's Box is opened, it can't be closed: both are substantially wider on the day, and the only potential buying catalyst would be for the ECB to come back into the market after 3 months of absence.

Spain 10 Year:

Italy 10 Year:

We expect the dead cat to rediscover gravity once Wall Street opens those Spanish and Italian CDS screens first thing this morning.

yes, Spandora's box was a very, very bad thing to open. It is only the first such box to open, well maybe just another in the line of "i could not have foreseen them doing that!" set of circumstances.

Lusitania, Liberty, Libya, Drones, Aliens, Zombies, 911, Oklahoma City, French Revolution, the very fiber and silvery screen showing this Hollyweed reality is their plaything. But it is only their plaything because they have clients who are tempted into being their client. Much as GS only has clients for exactly that same reason.

So is it a question of ending the "evil" of GS? Or is it a quetion of ending the need for Greed? Or it is acceptance of humankind as he/she is?

http://market-ticker.org/post=207157
No **** -- More Debt Doesn't Work?
...
"..The people responsible for this scam over the last four years -- each and every single one of them -- deserve to be held to account. Every single pension manager, every single Treasury official, every single House and Senate member along with nearly all of their staffers and both recent Presidents should be rotting in a Federal Prison right now on federal fraud charges.

Every one of them, along with all their so-called "advisors" who failed to get out in front of this, who failed to speak, who failed to stand up in front of a camera and speak to the truth.

It's a bleep-bleep Three Auction Treasury Note week. So the Ninnies are going back to pure Rote and continuing to bleep Gold and Oil - even though with the 10-year hovering at 1.60, it becomes detrimental to everyone everywhere to do so.

There's pent-up Momo on the UPside now, IMO. And the nanosecond they take the piles of bricks off Gold and Oil, the market may recover everything it lost yesterday and then some.

Meanwhile, Silver is still chomping at the bit, as are the Silver stocks.

And the Bubblevisions can mis-report all they want on the OPEC meeting before the fact. We all know it's going to be a messy, volatile, and possibly very surprising one.

Result: one type of causal explanation predominates more and more, is concentrated into a system and finally emerges as dominant — that is, as simply precluding other causes and explanations. --Nietszche